- The best general explanation for the weak world economy is an excess of savings over investment; weak business investment is a crucial part of this.
- Austrian economics has difficulties explaining the weak business investment, as low rates would normally lead to an excessive capital formation boom.
- The structural factors that are invoked to explain this away are straight out of the secular stagnation theory.
ZeroHedge Throws Austrian Economics Under The Bus | Seeking Alpha
January 11th, 2016 · No Comments